Hedgeye CEO Keith McCullough is adding Sprouts Farmers Market (SFM) to the long side of Investing Ideas. Below is a brief note.
Here's one for everyone who listened to The Call @Hedgeye this morning and took good research notes, as grocery guru and Consumer Staples analyst Daniel Biolsi dropped knowledge: Sprouts Farmers Market (SFM).
Here's a good excerpt from a recent Consumables Pro product note too:
One of the main reasons promotions are lower is that the breadth and depth of products are lower due to the increased demand exceeding production capabilities. The following chart depicts the total distribution points, as reported by Nielsen. For the week ended Oct. 3rd, the total distribution points were down 5.3%. Sprouts Farmers Market has pulled back on promotions in its produce section, a major category in which it previously used to drive traffic into the stores, driving 450bps of gross margin expansion in the most recent quarter. In contrast, Kroger only had 5bps of gross margin expansion in its most recent quarter.
Buyem on sale,